Introduction

Blockchain technology—often used interchangeably with “crypto,” “digital assets” or “web3”—is the result of decades of advancements in decentralized and distributed ledger systems. Bitcoin, the first blockchain, emerged in 2009 during the Global Financial Crisis. Initially dismissed as a niche experiment, the crypto industry has since evolved into a vast ecosystem of investable assets, where “tokens”—rather than traditional equity or debt—serve as units of ownership and governance in blockchain networks and onchain companies. The proliferation of tokens has given rise to a distinct asset class, attracting investors seeking exposure to blockchain’s growth. Yet despite its longevity, resilience and expanding adoption, crypto remains widely misunderstood, often overshadowed by speculation, volatility and regulatory uncertainty. Much of the skepticism stems from extractive behavior and high-profile fraud perpetrated by bad actors. The collapse of FTX, an offshore centralized exchange that misappropriated billions in customer assets, is a prime example. While this failure was unrelated to blockchain technology itself, it cast a shadow over the industry and fueled widespread misconceptions.

Beyond the headlines and market volatility, blockchain technology’s long-term vision remains intact: to build a more decentralized and transparent internet, where ownership and control shift from centralized intermediaries to users. Prominent venture capitalist Chris Dixon at a16z popularized the term “web3,” envisioning an internet where users can not only “read” and “write” to the web but “own” and participate in its economic upside.

Those who recognized this structural shift early and allocated capital accordingly have been rewarded, as crypto has been one of the best-performing asset classes since 2009. Bitcoin, the asset in crypto with the longest history, has been the best performer in 9 out of the past 12 years (Figure 1).



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